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NVo-k1 Company has only Job #973 in process at May 1 of the current year. The job has been charged with $6,000 of direct material
NVo-k1 Company has only Job #973 in process at May 1 of the current year. The job has been charged with $6,000 of direct material cost and $2,400 of direct labor cost. The company applies overhead costs to jobs at a pre-determined rate of 100% of direct labor cost. During May, NVo-k1 Company reported the following: Direct materials: purchased ......................... $37,000 used in production ................ $34,000 Labor: direct labor cost incurred ........ $28,000 indirect labor cost incurred ...... $ 7,000 Overhead: actual overhead costs incurred .... $22,000 Inventories: work in process, May 31 ........... $15,000 finished goods, May 1 ............. $19,000 finished goods, May 31 ............ $12,000 Calculate the cost of goods sold for May before the overhead variance is closed.
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